As 2024 nears its end, the cryptocurrency market once again proves its fierce volatility. From major coins plummeting to a wave of futures contract liquidations, all contribute to a seismic event in the digital financial ecosystem. So, what really happened?

Notable Phenomenon

1. Bitcoin: From Peak to Abyss

Bitcoin's price has dropped significantly from $97,748 to $94,249 within a few days. Although the decrease is only a small percentage, in the sensitive cryptocurrency market, this is enough to trigger a chain reaction.

2. Altcoins Also Can't Escape Their Fate

Ethereum, Dogecoin, and a range of other altcoins also suffered severe losses. Ethereum plummeted from $7,000 to $6,300, while Dogecoin fell back below $0.07. There seems to be nowhere for investors to shelter amid the storm.

3. The Wave of Liquidation of Contracts

According to data, over $1.5 billion in futures contracts were liquidated within just 24 hours. This not only reflects the panic of retail traders but also that of institutional investors and large whales.

Causes of the Collapse

1. Market Manipulation by Whales

Many believe that large whales deliberately created downward pressure to liquidate retail investors' positions. This is not the first time the market has been influenced by "big players" holding large amounts of Bitcoin.

2. Policy and Management Tensions

Several countries, including the United States and the European Union, are increasing scrutiny of cryptocurrency with stricter regulations. Rumors about imposing high taxes or completely banning cryptocurrencies have caused investor sentiment to fluctuate.

3. Trading Bots and Programming Errors?

Another reason may stem from automated trading bots that are programmed incorrectly, leading to mass sell-offs when prices fall below key support levels.

Consequences of the Collapse

  1. Panic Wave
    Many investors sold off their assets in fear of losing everything, resulting in even stronger price declines.

  2. Opportunity for Long-term Investors
    In this context, some investors see this as an opportunity to buy in as prices drop, especially with major coins like Bitcoin and Ethereum.

  3. The Market is Purged
    Strong corrections often eliminate weak investors, leaving those who truly believe in the long-term potential of the market.

Forecast: Where Will Cryptocurrency Go?

  1. Recovery or Deeper Dive?
    If history repeats itself, the cryptocurrency market may recover strongly after the crash. However, this depends on the overall investor sentiment and the stability of regulatory frameworks.

  2. Bitcoin May Still Lead
    Despite the downturn, Bitcoin remains the most favored digital asset. A strong growth surge could occur if market confidence is restored.

  3. The Market May Shift to Sustainable Growth
    After the shock, the market may enter a more mature phase, with the participation of large institutions and support from advanced technologies like Web3 and DeFi.

Advice for Investors

  1. Don't Sell in Panic
    Strong fluctuations are an inherent feature of the cryptocurrency market. Stay calm and do not make decisions based on emotions.

  2. Research Thoroughly Before Investing
    Don't let FOMO or FUD affect your decisions. Invest based on clear data and understanding.

  3. Seize the Opportunity
    If you believe in the long-term potential of cryptocurrency, this could be the ideal time to accumulate assets at a low price.

Conclusion

The collapse of the cryptocurrency market in 2024 serves as a reminder of the volatility and risks in digital asset investment. However, it also opens up significant opportunities for those with a long-term vision and patience. Remember, in cryptocurrency, only those willing to learn and accept risks can ride the big waves to reach the shore.